Mining venture gets boost
Brian Walker | Hagadone News Network | UPDATED 13 years, 6 months AGO
POST FALLS - A local bright spot in the sluggish economy has received a boost to get off the ground.
UnderGround Force, a new firm spurned out of Ground Force Manufacturing that's expected to employ about 125, has been approved for an Idaho Community Development Block Grant for $495,000 to help fund infrastructure for the plant between Post Falls and Coeur d'Alene.
UnderGround Force will build equipment for underground mining companies similar to what Ground Force does for other mining firms.
"This alleviates pressure on the city to extend utilities to that location," said Eric Keck, Post Falls city administrator.
The property north of Seltice Way near Ground Force's facility was recently annexed into Post Falls.
The grant is from the Commerce Department and is for the job creation that the company will provide as a result of the new facility.
Ron Nilson, CEO of Ground Force and UnderGround, said the grant providing infrastructure is a critical step in the project.
"For us to put that many workers on site, we need to bring sewer and water there or we can't do it," Nilson said.
Bill Melvin, Post Falls engineer, said the project will be on fast track. However, a process that includes bidding for the work and grant condition guidelines must be followed.
"We should see the engineer's survey crews on site the later part of this week," Melvin said. "Our goal is to award a bid the first part of September so that we can complete the construction this fall."
An environmental review by Panhandle Area Council will run concurrently with the design performed by Welch Comer Engineers.
The city is providing staff time toward the project as a match for the grant.
"The good news is that we will not have to provide cash for the match," Keck said.
City officials say the investment will not only assist UnderGround create jobs but help future development on the east side of the city.
"We need to move quickly to get infrastructure in place as Ground Force will be moving soon to begin construction of their new building," Keck said.
In addition to extending water and sewer to the site, improvements include curbs and gutters, drainage swales, a paved trail and street lighting.
The former Knife River property across Seltice from Ground Force was purchased for UnderGround.
The business expansion is an estimated $6.5 million private investment. An existing 9,000-square-foot building is being renovated and a 72,000-square-foot building will be added. Construction on the new building is expected to start this year.
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